Author: Geoff Pieroway

HEICO Corporation (HEI), an American aerospace and electronics company, has recently garnered attention following Berkshire Hathaway’s investment of $185.4 million in its shares. Positioned as a technical leader in the Aerospace and Defense sector, HEICO is not only outperforming its peers but also demonstrating strong relative strength across various asset classes. Given the current market volatility, the top sectors often serve as bellwethers, indicating HEICO’s potential resilience in a favored industry.

SIA has consistently identified the Utilities sector as a top investment area for 2024, with Constellation Energy Corp (CEG) emerging as a standout performer, delivering a year-to-date return of 128.46% and holding the #1 position in the SIA NASDAQ 100 Index Report. In a landmark partnership with Microsoft, Constellation is set to restart a unit at the Three Mile Island nuclear plant, further driving innovation in clean energy. With a bullish SMAX score of 10 out of 10, CEG continues to demonstrate strong short-term strength compared to other asset classes.

Qifu Technology (QFIN) is a Credit-Tech platform in China that has recently recovered from a multi-year slump. Currently in the Favored Zone of the SIA International ADR Report, QFIN was added to the SIA Hypothetical International 5-ADR Model after Vista Oil and Gas (VIST) moved out. This concentrated strategy selects only top relative strength names, boasting an impressive lifetime performance of +1,792% since 2012 (including 10 years of live trades and back-tested beyond, gross of fees). QFIN’s strong relative strength highlights the model’s focus on high-quality stocks, making it a valuable addition for investors looking to optimize their portfolios.

Alibaba Group Holding Limited (BABA) is a leading Chinese multinational technology company focused on e-commerce, digital media, logistics, and cloud computing. Recently, its shares have gained attention, rising 31.77% over the past month and 41.49% year-to-date, as the Chinese market experiences significant fund inflows. Currently ranked #26 in the SIA International ADR Index, Alibaba is poised for a potential breakout, with resistance at $118.64. A close above this level would confirm a new bullish phase, supported by a strong SMAX score of 10 out of 10, indicating solid short-term performance.

The Japanese Equity ETF (JAPN.TO) has risen from $37.37 to $48.44 since its purchase, achieving a 29.62% gain before fees and demonstrating strong relative strength in the SIA Hypothetical 5 CAD ETF Sector Model. This model, which selects the top five ETFs from leading sectors and is rebalanced quarterly, has delivered a remarkable 270% return since its inception in 2013, significantly outperforming the SIA CAD 60/40 Balanced benchmark.

Tencent Music Entertainment Group (TME) has emerged as a leading performer in the SIA relative strength rankings for the latter part of 2023, quickly returning to the favored zone after a brief dip. With a strong SMAX score of 8 out of 10, TME showcases solid short-term performance and excellent relative strength compared to other asset classes and peers in the SIA International ADR universe.

Alimentation Couche-Tard (ATD.TO) has recently lost relative strength and currently sits in the Unfavored zone of the SIA S&P TSX 60 Index Report, reflecting a year-to-date decline of 2.77%. Despite being in a long-term accumulation phase, the stock has shown bearish momentum with key resistance at $82.31 and support at $73.09. Advisors and portfolio managers should be cautious, as the current SMAX of only 3 indicates weak performance against other asset classes, along with its ominous move below the 50-week moving average.

Oracle has recently been added to the SIA US 5-Stock Model, highlighting its impressive performance and strong market position. This model features top relative strength names and boasts a Compound Annual Growth Rate (CAGR) of 14.55% (net of fees), significantly outperforming the S&P 500 of 8.05%. Enhance your practice with our high-performing SIA models—contact your SIA agent today; we’re always happy to assist!

BlackRock Inc. (BLK) has recently entered the favored zone of the SIA S&P 100 Index Report, rising 13 spots with an impressive 19.35% return over the past quarter. As the world’s largest asset manager, BlackRock’s strong short-term performance, reflected in its perfect SMAX score of 10, underscores the resilience of financial institutions amid ongoing market fluctuations.